Individual Taxpayers’ Compliance Behaviour and Tax Revenue Generation in Akwa Ibom State

Abstract

The problem of tax evasion and non-compliance by individual taxpayer has created significant challenges for the Akwa Ibom Staten tax system. Based on this study examined that relationship between individual taxpayers’ compliance behavior and tax revenue generation in Akwa Ibom State. Specifically, the study ought to determine the relationship between knowledge of tax obligation and tax collection efficiency in Akwa Ibom State, to ascertain the relationship between perceived ease of tax procedures and tax collection efficiency in Akwa Ibom State and to assess the relationship between perception of tax fairness and tax collection efficiency in Akwa Ibom State. This study adopted the survey design. Purposively, a sample of one-hundred and forty-five (145) tax officials/experts was drawn in order to attain the study objectives. The data collected was coded, transformed and analyzed using multiple regression via Statistical Package for Social Sciences software (SPSS) and presented by use of tables. The study findings revealed that knowledge of tax obligation has a positive significant relationship (Coeff. =0.171{0.035}) with tax collection efficiency in Akwa Ibom State while perceived ease of tax procedures has a positive significant relationship (Coeff. =0.228{0.005}) with tax collection efficiency in Akwa Ibom State. It also revealed that perceived ease of tax fairness has a positive significant relationship (Coeff. =0.267{0.001}) with tax collection efficiency in Akwa Ibom State. Based on the analysis of variance (ANOVA), the F-change test showed that the overall effect was statistically significant (p-value = 0.000<0.05) and was however concluded that taxpayers’ compliance behavior plays a significant role in enhancing tax revenue generation in Akwa Ibom State. The study recommended, amongst others, that tax authorities should streamline and simplify the tax filing process by creating user-friendly online platforms, providing clear instructions, and reducing unnecessary complexities.